A Review of the Nigerian Energy Industry

Eko Electricity to add 474MW from embedded generation

16 June 2015, Lagos – As part of its continued efforts to ensure that customers enjoy improved and reliable power distribution within its network, Eko Electricity Distribution Plc (EKEDP) has concluded a pioneering plan to acquire up to 474 megawatts of electricity directly into its network in an unprecedented embedded power generation initiative, which will more than double its current allocation from the national grid.

Eko ElectricThe company has also installed 29,071 prepaid meters within 18 months, while the Board of Directors has approved a roll-out plan for additional 50 prepaid meters at a cost of N52 billion.

The embedded generation programme involves the construction of smaller -sized plants to generate electricity that is connected to and evacuated through the distribution network infrastructure.

The proximity of these plants to load centres within various communities will further assist EKEDP in alleviating some of the current challenges being experienced by unclogging its transmission grid of bottlenecks amongst other notable issues.

EKEDP had extended invitation bids to budding power generating companies and in return, received over 50 letters of interest.

After the bids received were evaluated for both technical and commercial competence, 14 companies were adjudged as adequate in possessing the technical and commercial capacity to participate in the first phase of EKEDP’s embedded generation programme.

Following the receipt of NERC approval on the submissions tendered, EKEDP will then invite approved companies for final negotiations leading to the signing of Power Purchase Agreements (PPA) with them.

Projects alongside the Embedded Power Generation program are expected be completed within the next 18-24 months bringing about a most welcome relief to customers who have had to endure long periods of erratic power supply from the grid.

Speaking on bringing relief to its valued customers, the Managing Director of EKEDP, Mr. Oladele Amoda, said in a statement at the weekend that “with the active support of NERC for our proactive measure, our customers can indeed expect to enjoy the benefits of the privatisation of the power sector”.

Amoda continued that “apart from the embedded generation plan, EKEDP is also engaged in bilateral negotiations to purchase more power into our network which will bring relief to our consumers in the short term”.

Speaking earlier on Friday at a stakeholders’ meeting in Lagos, Amoda stated that the company installed 29,071 meters in 18 months and has commenced a process to augment power allocation from the grid with about 700 megawatts through embedded IPPs and more from bilateral agreements with existing merchant generators.

“At the advent of privatisation, our aggregate technical, commercial and collection (AT &C) loss stood at 35 per cent but today it is below 30 per cent. The modest reduction was achieved through network rehabilitation, reinforcement, improvement and assets upgrade. More than 10 billion have so far been expended on these projects. Poor metering is one of the legacy inherited from the defunct PHCN. We have initiate a robust metering plan; if approved by the regulatory body, will enable us roll out and step up meter installation activities and this will run through the next few years until all our customers have functional meters,” he explained.

He said the meters would come with modern technology to delight the customers with their various functions, adding that it will cost N52 billion.

– This Day

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